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Argentina's Diesel Output to Be Cut on Strike, Cronista Says
Bloomberg
May 12, 2008

By Juan Pablo Spinetto

May 12 (Bloomberg) -- Repsol-YPF SA, Exxon Mobil Corp. and Royal Dutch Shell Plc will cut diesel fuel production in Argentina because of a labor dispute, El Cronista reported.

The companies, together with Petroleo Brasileiro SA, will inform the Argentine government today that they will have less crude to refine because of a strike, the newspaper said, citing unidentified oil executives.

Industrial action is affecting the operations of Repsol, Petrobras, Occidental Petroleum Corp and BP Plc's Pan American Energy in the Santa Cruz province, Cronista said. Some companies have already warned refineries that they won't be able to fulfill contractural obligations, the newspaper said.

The strike, which began on April 30, has reduced production from 6,000 fields in the Santa Cruz province. About 80,000 cubic meters of crude and 15 million cubic meters of natural gas have been cut, La Nacion reported on Saturday.

To contact the reporters on this story: Juan Pablo Spinetto in London at jspinetto@bloomberg.net

Last Updated: May 12, 2008 03:59 EDT

 

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